Purpose Built Rentals in the News

Construction is underway on Radius Etobicoke, a new 22-storey purpose-built rental development that will bring 259 rental homes to Toronto’s west end by 2028. Located near major transit connections, the project will offer a mix of one-, two-, and three-bedroom suites alongside amenities such as a fitness centre, business lounge, theatre, and outdoor terrace. Developers say the project reflects a broader shift toward renting as a long-term lifestyle choice, driven by changing housing affordability and evolving resident preferences.

Rental vacancies in the Greater Toronto and Hamilton Area reached a five-year high in early 2026, signalling a shift toward a renter’s market. Urbanation reported a 5.4 per cent vacancy rate in newer rent-stabilized buildings, up from 3.6 per cent in 2025. The increase is linked to slower population growth, weaker economic conditions and a larger supply of rental units. Landlords are responding with incentives such as free rent and move-in bonuses, reducing effective rents by an average of about $400 per month. However, tenant advocates say Toronto rents remain unaffordable, with one-bedroom units often costing between $2,000 and $2,500. Despite softer demand, purpose-built rental construction continues to grow, with more than 10,000 units started over the past 12 months.

A recent Toronto Life feature spotlights four standout developments set to redefine renting in the city, including Rushden, poised to be one of Canada's largest PBR projects at 1,304 units across three towers near Main Station, and Hazelview Investments' Bloor Crossing redevelopment at Dufferin and Bloor, which will deliver 1,140 units across a 12-, 34-, and 38-storey complex by spring 2026 Toronto Life. With roughly 80% of Ontario's existing purpose-built rental stock dating back to before 1980, these new builds mark a significant step toward modern, amenity-rich housing designed specifically for long-term renters.

Montreal's residential construction landscape has undergone a historic shift, with over 80% of new housing starts in the metropolitan region in 2025 being purpose-built rental units, according to a new report from the Canada Mortgage and Housing Corporation (CMHC). Just 2,027 condominium units broke ground over the same period, reflecting sustained weakness in the condo market driven by economic uncertainty, investor pullback, and a widening price gap between new and existing units. Tania Bourassa-Ochoa, CMHC's deputy chief economist, notes that Montreal is currently seeing unprecedented levels of both completions and units under construction.